tv Power Lunch CNBC March 7, 2014 1:00pm-2:01pm EST
wynn or lvs? >> i will give it to jon. >> how about final trades? >> wynn still wins. foot locker. >> anthony? >> costco. >> doc? >> bk. >> steph? >> usb or mtb. >> have a great weekend. "power lunch" starts now. "halftime's" over. the second half of your trading day begins now. there you are. one big show, three big issues. they all have a major impact on you. issue number one, jobs in the usa. 175,000 new jobs created last month, better than the estimates. where did they come from? and what does it say about the bigger economic picture? economic issue topic number two, this amazing bull run, one of the steepest upswings for the markets since world war ii. how long can it last? what is its health almost five years to the day since the market bottomed out? that brings us to issue number three. what is your next best move,
sell, keep putting money into equities and mutual funds, take something off the table, put it into bonds, cash? we will give you answers and advice in the next 59 minutes. let's first check in with sue downtown. >> i'm just looking at the markets, ty. despite the big jobs number, not the greatest day for stocks. we are far off of our highs of the day. right now, the dow is up 22 points on the trading session. the nasdaq is negative, down about half a percent. we are fractionally lower on the s&p but check out some staggering stats we found for you. the current five year bull market is the second strongest since world war ii. it is the sixth longest on record and the bull run ranks fourth in terms of the strongest bull markets of all time, according to the people who rank bull markets. gold up 47% from the market low on march 9th of 2009 and crude up more than 110% since that particular point. so kenny pulcari joins me now.
we were anticipating this number all week. everybody said if we get a boffo number to the upside, sky's the limit for the market. that has not been the case. >> it was very interesting because pre-market when that number came out, you saw futures rally right away, ten points and it felt like that's what they were going to do, they were going to challenge, they were going to challenge not only the all time high but try to challenge 1900. in fact, it went to the high and bang, hit a wall. and there was real natural selling there. listen, it's friday, the weekend's coming, you still have the whole geopolitical issue out there. people are just taking -- sellers are not being aggressive but there is plenty around for sale. >> what would you do, if you are a long-term investor, maybe you don't have to do anything at this point. >> maybe you don't. as a long-term investor, you still have the plan in place. however you do it. whether you do it monthly or quarterly, however you do it, you should maintain that plan because the truth is, the turn-around i think is really happening, not only here but in other parts of the world that we have been talking about, so the future does look bright. but a long-term investor
shouldn't make day-to-day decisions based on one number. >> no, but you know, everybody was using the weather as an excuse. that was expected to be an influence in this particular report so can we no longer use weather as the excuse? >> i don't think you can use weather anymore. it will be interesting tonight and over the weekend how they actually dissect this number because this runs in complete contrast to all the other numbers we've seen the last couple weeks. a lot of people sit there scratching their head going how do you come up with that number. unemployment actually ticked up a tenth of a percent. >> that's right. all right. kenny, thank you so much. see you a little later. ty? the markets have by any stretch come a long way over the past five years but some stocks really haven't. probably most the ones we own. we don't own stocks, actually. dominic chu taking a closer look at the names that have been left behind in the bull run. we will start with seema. you have been looking at the best performing category, it is consumer discretionary but as we all know, there are sectors and then there are mini sectors within. tell me about that. >> the sectors up 320% but there
are three main sectors in consumer discretionary, online travel, hotels and luxury. what's interesting is that it's not just a pickup in the economy in consumer spending fueling these sectors. strategic decisions by companies have helped investors become more bullish on these names. first up, let's talk about online travel, companies like priceline and expedia, both up 1,000% since 2009 thanks to making key acquisitions, building out hotel inventory and identifying the rapid shift to mobile early on. these stocks have been soaring. hotel stocks have also been on fire. morningstar says expanding overseas, specifically in macao, building hotels in key locations were key in driving profitability for these names. lastly, high end retail. tiffany's up 450% since the market bottom. coach up 314%. analysts point out that these retailers were quick to witness the emerging market boom and did a good job at expanding their presence in key markets like
china before their competitors. several strategists on the street are betting that consumer discretionary stocks will outperform this year, citing gradual improvement in the economy, the housing market and in wages plus jpmorgan's thomas lee points out the mini selloff we had in january has brought down valuations. >> let's call these the pharrell williams happy stocks. >> love that song. >> i love that song, too. now let's go to the daniel powder, you had a bad day. >> so you had a bad day. these stocks have really had a bad five-year stretch. if you look at some of these stocks, seema told you about the star performers. take a look at big names here. weight watchers for one. this stock in 177% run for the s&p 500 is up just 22%. with weight watchers, there is concerns about whether or not it's more about traditional meals and meetings and points or can they monetize the mobile, the evolution to online weight watch tracking. that's a huge one. also, check out another one
that's pretty much just flat dead money over the last five years, avon, the direct to home selling of cosmetics. that company has concerns internationally, perhaps issues with whether or not people are still bullish about that particular part of the cosmetics business. it's been flat for the last five years and here's one for you, and this is interesting. apollo education, it's been highly publicized, some of the controversy around these for-profit education type programs. apollo has lost half its value even since the lows of march of 2009. so this is a company, one of many of these for-profit education stocks, that has not had a good run. devry another one that hasn't been a star performer in the russell 1,000 broader index of large cap companies. >> if you had taken apollo and the points you still would have lost. >> with the points. >> thank you very much. 175,000 jobs created in february. the participation rate, though, still remains near historic low of 63%. what can you tell us about the
numbers inside the numbers? >> first, i will give you a pen. lot of numbers coming up. i will take some notes. first, the 175, let's talk about that, suggests underlying strength of what is widely acknowledged as harsh winter weather month. here are the numbers. non-farm up 175, december, january revised, together 25,000. unemployment rate ticks up but that's because people came back into the work force. that's a good sign, along with a strong gain in average hourly wages up 0.4%. those are two good signs for the work force -- for the labor market. one place we saw the weather was in the decline in hours worked. they didn't shed employees, they shed employees' hours. that's down to what looks like a three-year low. where were the jobs? education and health coming back stronger, leisure, hospitality, maybe disney hired a lot of people because people fled the cold. temporary help, that can be a good sign, up 24,000. construction still did well despite the weather and retail. now to what tyler was talking about. even while the numbers were good, the participation rate,
the percent of the population that's part of the work force, remains a dismal 63%, in part because of growing retirees. they drop out. also, discouraged workers dropping out of the work force. the reason for this enduring the critical plight of the long term unemployed. they remain out of work for months, then drop out of the work force. here are two measures i want to show you. the short term unemployment rate, those out of work less than 27 weeks, falling below the average, now 4.2%. that's pretty good. the long run unemployment rate, a full percentage point above the average, roughly a million americans who have been out of work longer than normal. bill dudley today saying the low participation rate a sign of plenty of slack in the labor market and a reason to keep the fed's foot on the accelerator. >> thanks very much. appreciate that. sue? we turn to the kremlin and they pretty clearly and sarcastically rejected calls for talks between russia and the
ukraine to be mediated by the west. a spokesman said the prospects quote, make us smile. cnbc's steve sedgwick is in kiev again for us today, after scoring an exclusive english intervow with ukraine's minister. over to you. >> reporter: yeah, there has been inflammatory comments from the russians about how they see events going on in the crimea. concern for the ethnic russian population there which makes up, it has to be said, around 60% of that population. i can tell you on that front i spoke to the deputy secretary general of the u.n., i spoke to him specifically about security issues in the crimea. he said he is ready to send monitors down as soon as possible but of course, his own envoy has been prevented from doing exploratory work down on the peninsula. elsewhere, i did speak to the prime minister today, mr. yatsenyuk, and i spoke to him that his government isn't recognizing the reality of russian troops on the ground. a parliament in the regional
assembly in the crimea that doesn't recognize the -- >> we are having a little bit of a problem with the feed from kiev, as you might imagine. there are technical issues on that. steve sedgwick reporting on his exclusive interview from kiev for us tonight. ty, back up to you. >> thank you very much, sue. let's go to dominic for a quick market flash. >> take a look at shares of mexican tv broadcaster groupo televisa, down 4% near session lows after regulators declared the broadcaster quote, unquote, dominant in that broadcast market. this means it's going to be required to share its infrastructure with third parties in an effort to spur competition so they have to open themselves up to more competitors. that's putting pressure on that stock. back to you. >> thank you very much. jobs, ukraine and president obama's response, and a big ruling on school funding. this is an important one. the right and the left get to sound off. more "power lunch" in two minutes. [ female announcer ] who are we?
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welcome back to "power lunch." check out this market flash here with alpha natural resources, sitting near session lows right now, down about 10% on the day. goldman sachs is downgradeing the company to a sell rating from a neutral. goldman is citing a challenging outlook for coal prices. one of the bigger losers in today's session. sue? >> thanks very much. we turn once again to that february jobs report coming in much better than expected with non-farm payrolls rising by
175,000 but the unemployment rate ticked higher to 6.7% from 6.6%. more americans were out looking for jobs, so is this a sign that there's more underlying strength in the economy than perhaps we think? here at post nine with me is mark morial, ceo of the national urban league and former mayor of new orleans. he was also just appointed to president obama's advisory council on financial capability for young americans. joining us from d.c. is ron christie, ceo of christie strategies and former special assistant to president george w. bush. welcome, gentlemen. congratulations, mr. mayor. congratulations. it's going to be an interesting journey for you, i think. let's start with the unemployment report that we had this morning. it was stronger than expected. does that indicate to you that perhaps parts of the economy are either stronger than we expected or getting better? >> the economy's in suspended animation. we've had consistent job creation but not significant enough to really bring down the problem of unemployment.
what i would highlight as a huge problem are the 3.8 million or almost 40% of the unemployed who are long term unemployed. this is a persistent problem which requires attention. many of these people have skills, many of these folks were in the work force for a long, long time so within this jobs report, i don't call it good, i don't call it bad. i call it consistent with what we have seen and it means there's more steps that are needed. the fed's got to continue and i think congress can and must do some things. >> ron, you want to respond to that? do you see some green shoots if you will in parts of the economy that perhaps we haven't seen before? >> i do. let me start by congratulating my friend again on his appointment. i think it's a mixed bag here. i think there is some good here. you mentioned the non-farm payrolls, about 175,000, little bit better than expected by most economists. on the other hand, if you look, the last three months, we've had about 129,000 jobs created a month which is not nearly enough to get us going, and what i'm
looking at is the work force participation rate which remained at 63%. so i think it's a mixed bag. i really wonder what the release of the beige report by the fed with the fact that we've had such terribly cold weather across most of the united states, whether weather really helped hinder the economy. we have to wait and see. let's turn to the ukraine. steve sedgwick, we obviously had technical issues with his feed before, but he did score an exclusive and first interview with ukraine's new prime minister. let's listen to that, then we can talk about it. >> there will be no referendum as it is absolutely and entirely [ inaudible ]. no one will recognize this referendum probably except probably syria or venezuela, and i want to be very clear, crimea
was, is and will be an integral part of ukraine. no concessions, full stop. >> ron, it does not look like things are coming back off the cliff fast enough for the international community, certainly. how would you rate the president in terms of handling it? some people say mr. putin got the better of the u.s. once again. other people disagree and say this diplomacy is working well. what do you think? >> well, i think the president's failure of leadership didn't just start with ukraine. i think we have seen what happened with benghazi. i think we looked at what happened with the use of chemical weapons in syria. i think president putin took the measure of the president and said i can do whatever i want, i can use the threat of force, the united states and european allies are not going to prod me to do anything using military force, and i think unfortunately, the president's in a bad spot. i would say, however, we can bring economic sanctions against russia. their economy is very fragile and particularly if we cut off their gas exports going to europe, i think that's going to be really the only way we can
bring pressure to bear with mr. putin. >> what do you think? >> i think this is less about quote, the president and more about the nation's response to a foreign policy crisis in the ukraine and this standoff with russia. what the president is doing is i think the correct approach, which is he's building a coalition in the international community beginning with western europe to further isolate putin. putin is cornered. no one has run to his side or taken up his position, and i think what you see is the president working with france, working with germany, working with our allies in europe, and i think expanding beyond that, i think to try to put a framework in place. what i see from the current ukrainian prime minister was some pretty tough talk. and tough talk which means that there are a large number of forces in the world that are standing up to vladimir putin and i think that's going to continue, and i think what does concern me is this idea that we
used to defer, unite, consolidate behind the president when there was a foreign policy crisis. i think we do best to allow the president to be the voice of the nation as he tries to work out a diplomatic solution to a difficult crisis. >> let me turn you to a domestic issue here. there was a decision this morning by the kansas supreme court, the state supreme court there, that says the current school funding and the levels of public school funding is inadequate and unconstitutional. ron, they did lose a lot of tax revenue in that state when the governor put in much lower -- and the legislature approved much lower tax rates. what do you make of the decision today and what are the national ramifications? >> i think the governor brownback was put in a very tough spot in kansas. i think the reflex of the republican position is hope we can spur economic development
but when it comes to our children, i think this was a difficult case. i think the kansas supreme court was very clear on this. i don't think we will have a national ramification by this case but we always need to make sure we put our kids first. i don't want to criticize the governor but this was a loss for the kids of kansas. >> all right. i think you might agree with that. >> i agree, but i would also say this. many states have provisions in their constitution which protect the integrity of education funding and require both adequacy and to some extent, equity. i think this decision has longer and bigger implications beyond kansas, because i think this supreme court in kansas stood up to their own governor and legislature and said the steps you've taken on school funding are unconstitutional. >> i think it will have some big ripple effects. thank you both. always a pleasure. >> always a pleasure. >> ron, we will get you out of that dismal d.c. weather next time, up to this balmy new york city area where it's all of 34 with a wind chill of ten. have a great weekend. ty, up to you. >> it looked murky down there.
look at that chart, folks, up more than 4,000% -- 4100% in the past 12 months. up 45% this week alone. why this company and stocks in this sector could be the next big thing for investors like you. plus this weekend marks the five-year anniversary of the market bottom. does the rally still have legs and what should you do if you missed out on big chunks of the bull run?
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well, this weekend marks the five-year anniversary of this incredible bull run. the nasdaq is struggling a little today but it is up more than 240% since the market low on march 9th of 2009. sheila dharmarajan is following the big movers for us uptown. hi, sheila. >> well, the nasdaq is underperforming the market today and that is something you actually don't hear too often. we are off session lows right now but still down about .6%. so what is driving the nasdaq lower? i got one word for you. that is biotech. biotech has been taking a hit today, also yesterday. if you take a look at the nasdaq biotech index, it is down for the second day in a row. a little bit of head scratching as to why. gilead is a stock that everyone is talking about, some commentary that there's more competition when it comes to hiv drugs. that stock has been off for the past two days.
but take a look at regeneron. that stock actually just taking a hit in the past few minutes. some concerns about one of its drugs that it is doing, the fda is looking into, but if you look across the board, we are seeing weakness in biotech everywhere. so all of those names, all down today in a big way. what is providing some support for the nasdaq issintuit. basically what's happening is h & r block's pain could be intuit's game. finally, the stock down 10%, fireeye. you read the commentary on the company, bullish out there. the company is gaining market share, has a powerful platform and of course, we all know how much emphasis there has been on cybersecurity. perhaps just one of those down days after that offering. >> thank you very much.
we will have more on the bull run in just a moment. first, how to play today's jobs report. with us from chicago, our cnbc contributor jim yoreo and jeff killberg. gentlemen, take it away. jump ball here. is there anything i should do tactically in light of today's jobs report or not? >> ladies first. >> i think one thing that i think is significant is the move that we have seen in long term interest rates. it seemed they were getting ready to go higher a couple days ago and today was the push they needed. when we see the yield curve steepen, the sector to me that seems to do the best is the banks. i have been looking at some of the banks, bank of america particularly. haven't pulled the trigger yet because the entry point but banks should do well in a steep yield curve environment. i think that's where we're going. >> i think we saw an equity hybrid here. off this number we have to remember the last 15 months we had an average move up about 66 basis points on the unemployment. that's with a high of 280. this is anemic growth.
i know it's consistent but we cannot celebrate this. we need more. at the end of the day i think this presents a selling opportunity. >> 175, i don't agree is anemic growth. this is a solid number. >> you said that in '08 you would have been slapped silly. >> i know but we're not. i still think weather is affecting this number. i think 175 looks pretty good. the last two numbers were awful. this number is not that bad. >> we just ran a little thing on the screen there that indicated that you think the market is going to go sideways to down over the next nine months which suggests that your money can do better elsewhere. >> i do. my dad was a drill sergeant in the army. it's time to book the profits, buy volatility under 14, if you want to get long, a short etf, sh, get long because the market's coming back. >> when you look from a 20 year standpoint, when you look at the trajectory of this last rally,
seems silly to think we won't go down at some point in time. i would book profits as well. as far as the whole years ago, i think we will see 2,000 but it will be a circuitous route. >> they took that word off the s.a.t.s, guys. thank you both very much. now you can get 400. down to you. >> ty, you're on fire today, baby. let's go to the bond market and rick santelli, who is also in chicago. >> reporter: keep in mind we closed at 265 last week, 2.74 yesterday and 2.75 is a critical retracement. we have yet to really close above and here we sit at 2.78. this could be a very technically significant close. remember, prioritize. a close on a daily basis is important, a weekly basis point like today, much more important. intraday, we almost climbed up to 282. we settled back into somewhat of a range. year to date chart really shows the retracement areas i was talking about. once we get a close above 2.75, light resistance at 2.85, we
will be testing 3%. should it occur, remember, there's a lot of reasons to think maybe we will get a little buying towards the end, think about what's going on with ukraine and russia. if we look at currencies, it's hard not to think about the crb as well. commodity research bureau index hovering at the highest levels, i think since october of 2012. remember, look no further than things like pork which is bacon down here, the futures, look at live cattle, think orange juice, coffee. last chart, the euro currency really having a stellar performance breakout after the press conference yesterday. if you are germany and your energy costs are soaring and you are a big export country, this means something to you. sue? >> it sure does. nicely done, ricky. thank you very much. let's take a look at the gold markets set for a fifth week of gains on the week. the metal up nearly 2% for this week amid the tensions in ukraine. right now, at the close, we are seeing a little bit of profit taking now. we are down about 1% on comex
gold. in terms of the other metals, we have been highlighting the palladium market for some time this week because it has hit consecutive new six-month highs because russia is a big exporter of palladium and any sanctions would lessen the supply on the market. and we have another modest gain in palladium today. you are up to date on the metals markets. >> thank you very much. hiring bumping up more strongly than expected in february. where are the jobs in this economy? mary thompson knows. she is live in greensboro, north carolina. >> reporter: tyler, the jobs are in the aviation industry. it is growing but some segments face a labor shortage and that could crimp their business. that story coming up in a moment. back to you. >> thank you. corn shares soars, hitting a new 52 week high. we will explain why wall street is so smitten with korn ferry, up 13% today alone. ♪
up about 14 points on the dow jones industrial average. let's get more on the trading action. courtney reagan joins me at the nyse. >> happy friday. we made it. what a week. some of the early exuberance we saw from the jobs report did fade. the s&p 500 pulling back from record highs. actually dipping in the negative territory a bit before recovering. traders here expecting to grind a bit higher into the close but don't really think that we saw anything in the jobs report to change what the fed may or may not be thinking as far as the tapering when they have the meeting next week. if you take a look at the ten year yield, reacting in a way we might expect, hitting a six week high. we are just shy of that 2.8%, move up to 2.1% for the yield. we talked about the commodity prices as we looked at the gold close, commodity stocks trading higher. as we take a look at the retail winners, we have interesting names here. all retail isn't so bad.
we have foot locker trading considerably higher, a very strong earnings, strong guidance, strong same store sales. also getting an upgrade, nik e-trading higher. big lots also having a nice earnings report, getting an upgrade from jpmorgan. and skullcandy having a decent quarter. we have retail winners. skullcandy up more than 30%. i want to mention american apparel. american apparel is a very small stock and a press release came out yesterday saying that the company has gotten a letter from the nyse saying it is not in compliance with standards for listing. the company has until march 21st to put together a plan in order to remain trading at the nyse. this is fairly regular when a stock dips below $1. you can see it's at 78 cents so we want to bring it to investors' attention but note it is a very, very small stock. tyler? >> courtney, thank you very much. most thought the wicked winter weather we've had would have hurt hiring, but the latest job numbers coming in a lot
stronger than expected. where are those jobs coming frofro from? here's a clue. look up to the skies. mary thompson is in greensboro. mary? >> reporter: you know, growth in the aviation industry is steady and climbing and that's good news for timco who plans to hire 350 workers each year for the next three. why? they provide faa required maintenance on the world's growing fleet of airplanes. we are inside a 737-800 and it's undergoing what's known in the industry as a heavy check. it's required for all planes every six years by the faa and as you can see, all the interiors have been taken out. basically the parts are removed, inspected, repaired, replaced. same thing happens in the cockpit and on the exterior of the planes. to do this job, timco can't just hire anyone. they need faa certified technicians so as more planes take off, timco's business could face a ground halt if it can't find the right workers. here's kip blakeley, vice
president of industry and government relations for timco. >> we have found a real skips g skill gap in the marketplace. a technician has to be certified by the federal aviation administration. that's what makes this industry so safe and efficient but it's also a barrier. >> it's a barrier because faa certification requires two years of school and training. timco's pending labor shortage made worse by the fact 30% to 40% of its 1800 person work force in greensboro is retiring in the next five years. to start filling the labor pipeline, four years ago it developed a two-year program at a local community college where students can get their certification. 28-year-old daniel wade is a recent graduate. for him every day is different. he changes oil filters, lubes cables, installs interior panels and chairs all under the watch of a veteran technician. wade is happy to tell you of a recent raise and is also quick to tell you about the most important aspect of his job. >> make sure that whatever i'm
doing is correct and i'm doing it the right way because i know that i have people's lives in my hands every time i touch this plane. >> reporter: we are here in the cockpit. michael is doing upgrading on the wiring in the cockpit. this has been required by the faa. keep in mind that community college is not the only way timco is developing a work force. coming up on "street signs" i'm going to take a look at how they are actually mining some of the elementary schools in the area to get kids interested in a career in aviation. sue, back to you. >> terrific story. look forward to that aspect of it at 2:00 p.m. on "street signs." we had a better than expected jobs picture. more jobs added in the month and one more sign perhaps that a recovery really is on track. fresh off of their own strong earnings snapshot is korn ferry, the world's biggest executive recruiter. having a nice day in the stock market, shares trading higher by better than 13% now on that news. the gain in terms of dollars, $3.46 to the upside. all right.
already five times the average daily volume. so in a "power lunch" exclusive, ceo gary bernason joins us live from sunny los angeles. bring some of the weather back here, would you, please? >> it is beautiful here today. >> i know it is. thanks for joining us. congratulations on the good results. you have worked very hard to turn this company around. >> thank you. >> you really changed kind of the guts of korn ferry, if you will. it used to just be an executive recruiting firm and still is, but you made your company much more relevant to its customers by helping them manage their top talent. how did you do that? >> well, that's what -- we still do high end stuff. for example, the seattle seahawks, the front office, we did but more and more, it's really about not just getting great people but how do you get them to work together, how do you motivate them, empower them, and we really transformed the company to anchor our business around that aspect and what a ceo really thinks about.
>> you set the company on a new course and it comes at a time where we are getting the sense after this morning's jobs report that perhaps the economy is doing a little bit better than we thought. based on what you're hearing from your clients, do you agree with that and is hiring actually starting to pick up in the different levels of business that you deal with? >> well, still, listen, it's slow and steady. there is millions of americans that are unemployed which is a real issue but for ceos, it's about growth, growth, growth. and how do you get a work force that's learning agile, that can innovate. that's what it's all about today. >> you have a metric that i found very interesting in reading some of the details of your report. for every executive job created, at least five more jobs are created and filled. that's fascinating to me. >> well, that's absolutely true. you know, it makes sense.
listen, ceos are still, they are asking more out of people with less people, but they really have their eye around innovation. and also around consolidation. so that's what's really fueling the economy today. ceos are looking to innovate and then hire, not hire, then innovate. >> on that note, congratulations again on the good results. >> thank you. >> appreciate your being with us. tyler, up to you. >> thank you very much, sue. the back and forth between the united states and russia over ukraine continues. our chief international correspondent michelle caruso-cabrera has the latest details for us from 30 rock. >> it's supposed to be diplomacy but not sounding very diplomatic. the foreign minister of russia, sergey lavrov, saying any sanctions against russia would boomerang back against the united states, according to the foreign ministry, saying this is what lavrov told u.s. secretary of state john kerry. once again, lavrov making counterstatements to the talk
about whether or not there will be economic sanctions from the u.s. versus russia. far beyond those that have already been talked about when it comes to the state department and the difficulties they are imposing on travel for those they believe are associated with the invasion, what they're calling the invasion of ukraine. back to you. >> thank you very much. it's a stock that is up more than 4,000% over the past year. why this company and the stock in this sector could be the next big thing. plus, this weekend marks the fifth anniversary of the bull month run. lots of people including some particular people have made a ton of money in that time. who among the richest has gotten even richer. >> there are 150 more billionaires today than in 2009. we will tell you which billionaire gained $36 billion in five years, about $20 million a day.
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there's no beer robot that has suddenly chased them out. the technology is actually creating new jobs. siemens designed and built the right tools and resources to get the job done. welcome back to "power lunch." check out shares of nokia, rebounding 2% on the day. credit suisse is adding the mobile device maker of course to its european focus list, getting rid of certain mobile businesses. credit suisse saying it sees better earnings growth and margin expansion on the horizon after it turns into its own separate company. back to you. check out shares of this stock, plug power, a battery maker up more than 4,000%. you heard me right. that's in the past year alone. is this stock and the sector the next big investment? morgan brennan has been
inevitably plugging in. >> that's right. let's take a closer look at plug power. this manufacturer's hydrogen fuel cells for work force forklifts. huge run, 4600% in the past year now, and -- but that's even after that run, the company is trading back where it traded in 2011. today, up another 26%. that's despite another stock offering. fuel cell energy up 65% this week as well, fuel cell releases earnings on monday. two more, maxwell technologies and ballard power systems, both up more than 40% this week, too. we are seeing this as government extends more funding. we have companies adopting more clean tech, car makers like toyota and hyundai are rolling out fuel cell programs and of course, elon musk drawing attention to the shortage of
lithium doesn't hurt either. companies in the space are small and many haven't turned a profit yet. going back to plug, saying it will make money in 2014 but until now, it's been losing millions of dollars, going back to the chart we saw at the beginning. at its peak, it was over $150, then went down to a penny stock. now we are seeing this surge again. keep that in mind. it's been an electrifying run but this could be an electrifying fall if returns don't catch up to the street. >> the money has to come in at some point or that stock will run into some trouble. thanks very much. it is the fifth anniversary of the bull market this weekend. our wealth editor robert frank has been looking at who has made the very most since the market hit the bottom back on march 9th of 2009. what did you find? >> this bull market and stocks has also been a bull market in billionaires. there are now about 500 billionaires in the u.s., up more than 40% since 2009. some of the rebound is from people who were on the list, fell off and came back. but a lot of these are new and
these are people who made their money in finance and tech and gained with their publicly traded stocks. let's see who gained the most. bill gates up by more than $36 billion since 2009. he is now worth between $78 billion and maybe around $80 billion. most of the gains are not from microsoft stock but from cascades, his investment company that holds stocks in besrkshire and other companies. sheldon adelson went from a worth of $3 billion to around $48 billion today. carl icahn is up by $9 billion, now worth around $23 billion and the hedge funders scored big. ray dalio is now at $14 billion. america's billionaires have gained $1 trillion in the past five years, one reason why the record wealth levels for american households have just not translated into jobs. >> adelson's gains, i assume almost all of it is tied up in
his casino business. >> correct, and the stock of that. >> robert, thanks. have a great weekend. see you back next week. sue, down to you. well, bill gross of pimco, his latest comments creating quite a stir, raising questions about him and pimco. is the bond king paranoid? we will talk about that. plus, will the real bitcoin founder please stand up. why does facebook's sheryl sandberg want to ban the word "bossy"? for tapping into a wealth of experience. ♪ for access to one of the top wealth management firms in the country. ♪ for a team of financial professionals who provide customized solutions. for all of your wealth management and retirement goals, discover how pnc wealth management can help you achieve. visit pnc.com/wealthsolutions to find out more.
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all right. eight minutes to the hour. time for the power rundown with dominic chu, michelle caruso-cabrera. you can call me tiger any time. let's get started. >> only at night. >> let's get started with pimco's bill gross. he's told reuters, apparently, that mohammad el-erian has been seeking to undermine him, saying el-erian spoke to the "wall street journal" about the tension inside the company. it looked like the claws are coming out. >> yeah. when you read the whole story, it goes even further. bill gross says things like he has proof of this, that he's been listening to phone calls or that there is some kind of
access to communication within the firm. so it's a pretty explosive interview. the quotes are so explosive that the company came out and said no, they are absolutely not true. it's hard to tell exactly what's going on here, but bill gross is a man who does everything intensely. pimco is his baby, he founded it. he has worked like an animal all these years and i'm sure that at this point he's very frustrated to see what's been coming out in the press, and you know, he wants to defend himself and the company. >> dominic, our efforts here at cnbc to reach out to mr. el-erian have been met very politely with i hope you will understand that i can't speak to you at this time. it would seem to me that he probably, as part of his continuing roll with pimco's parent company, deutsche bank -- >> allianz. >> excuse me, allianz, that he would be enjoined from saying anything to anybody at the risk of losing some serious money. >> you know, the interesting part about the story is that it
may seem like great drama or soap opera but it doesn't behoove anybody on either side to really play this whole thing out so you got to wonder whether or not mohammed el-erian right now, for the record, has been saying that he doesn't really want to comment or is not going to comment, and you wonder whether or not bill gross is taking this tack, ultimately it will have a positive effect on the overall view or the view of pimco by investors. a lot of people still invest in those funds. >> let's move on to the man outed by "newsweek" supposedly as the creator of bitcoin. he's now denying his involvement. let's hear what he had to say. >> i had nothing to do with bitcoin. nothing to do with developing. i was just an engineer doing something else. i just believe that somebody put that fictitious name in there. >> it wasn't me. dominic? >> it wasn't me.
there was a song. listen, if you talk about the whole bitcoin concept, it is shrouded in anonymity. the whole idea about having this concept is you didn't have to traffic in traditional currencies so maybe if this guy is or isn't the founder of bitcoin, you can kind of see why he doesn't want to be at all identified with this currency. >> quick thought, michelle? >> he's clearly very shy. his very first words when the reporter talked to him was i'm not involved with that anymore. >> anymore. dot dot dot. let's move on to the last one. sheryl sandberg, condoleezza rice and the ceo of girl scouts are coming together to try and ban the word "bossy" saying it's a negative label too often applied to young women. what do you say? >> well, i was labeled bossy many times in my life. i didn't really give a damn, but if they want to go on this tirade, i guess it's true. i don't know. okay. >> for the record, i know bossy
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welcome back to "power lunch." shares of biotech company regeneron are lower. the fda is issuing a notice of adverse effects to regeneron's partner sanafy about a cholesterol drug the companies are co-developing. both companies say they are unaware of any adverse effects. they are being asked by the fda to take a closer look and do some more testing on possible effects. sue? >> yikes. a loss of 7.33% today. the rest of the markets, let's get you up to date. fuel cell energy, the battery makers we told you about earlier, with significant gains. there's another look at regeneron. now let's take a look at the markets. up 13 points on the dow jones industrial average. the s&p 500 down less than .1%, 1 1/2 points. the nasdaq is off half a percent or almost 23 points. almost exactly 23 points. three winners now, vf corp,
mellon and financial prudential, with gains of at least 2%. that does it, right? >> going up to 50 this weekend. 50 is the new 70. that will do it for "power lunch." >> have a great weekend, everybody. see you on monday. "street signs" begins right now. well, it has now been five years since the legendary bottom. our beloved colleague called it. what would mark say today? we have investing road map for the next five years. is there turmoil at the top of our good friends at pimco? inflation nation. you won't believe how much food costs are rising. even if you hate taxes, one big tax may need to go up and fast. >> indeed. happy friday, everybody. have you got your party hat on? >> no. >> happy fifth birthday boom. get your party hat on. come on. you ou